Magnolia to upgrade water, sewer system next year

City's economic development groups to help pay for project

Published 5:30 am, Thursday, August 18, 2005

Magnolia's two economic development corporations have pledged to help pay for a massive project to overhaul and upgrade the city's ailing water and sewer system next year.

Magnolia 4A and 4B economic development corporation board members voted last week to each add a line item to their proposed 2006 capital projects list. Both corporation boards agreed to split the cost — up to $200,000 each — for engineering services needed for an estimated $4.5 million citywide water and sewer system upgrade project.

"We have come to a point where we either stop adding connections (to the water and sewer system) and put a moratorium on building in the city, or we do something about it," said Magnolia City Manager Roger Carlisle.

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Carlisle also serves as executive director for both economic development corporations.

"We have to take a risk and expand in order to expand our tax base."

The proposed water and sewer upgrade project includes digging a third well on the west side of the city — the city's two existing water wells are on the east side — as well as a new storage tank and pumping system. That portion of the project is estimated to cost the city about $2.7 million.

The second part of the project involves the installation of new, larger water lines and valves to increase water pressure throughout the city.

That brings the total cost to about $4.5 million.

Carlisle told 4A and 4B board members last week the the city would revamp its water and sewer rates to cover the costs of selling certificates of obligation — or bonds — to pay for the project. But, he said, it would be helpful if both economic development corporations could divert some portion of their sales tax revenues to pay engineering costs, which will run about $450,000.

Jo Anne Windham, 4A board member, agreed that joint participation in the project was the way to go.

However, she said she would like to see the city annex all areas it adds to the water and sewer system in the future, as well as those neighborhoods already linked to the system that are not in the city limits.

"We have supported several (Magnolia school district) schools and neighborhoods outside the city limits, and we (city residents) are the ones who pay the bills," Windham said.

"We all need to contribute toward the system's costs."

Windham suggested making the 4A board's participation in the project contingent on the city's agreement to annex those areas.